We’ve all heard rumors about the hot housing market cooling off. But is it true for your area? A recent Realty Times article gives you 10 ways to tell.
Generally, the past year saw a slowdown in many real estate markets. But, the slowdown never materialized for some housing areas. Some areas even experienced price increases. Data compiled by the National Association of Realtors for 149 metro areas revealed that 71 areas experienced real estate price gains, 73 had real estate declines and five stayed the same in the fourth quarter. The localization of real estate is apparent when you look at individual areas. For instance, the Atlantic City and Salt Lake City metro areas saw annual housing gains above 20%, while prices in Florida’s Sarasota-Bradenton-Venice area saw an 18% housing drop, a 17% real estate drop in Florida’s Palm Bay-Melbourne-Titusville area and an 11.7% housing drop in Florida’s Cape Coral-Ft. Myers area.
As a homebuyer or seller, what are you to do? How do you tell if your local real estate market is up, down or stable? There are several clues that will usually tip you off. When evaluating your local real estate market, think about these issues:
1. Population. If the local population is growing, there will be more demand both for owner-occupied homes and real estate. You can check with your local economic development office for more information.

2. Prices. There are local brokers who produce customized pricing data for HOAs, neighborhoods and communities, and their data is often available through broker newsletters and from online localized market reports.

3. New Home Starts. Although your area may be experiencing a population increase, and thus, demand, more new homes create supply. You can check with a local home builder’s association or the economic development office and inquire about construction permits and starts.

4. Days on the Market. Always an important indicator of a market is how many days a house for sale sits on the market before selling. You can speak to a local broker about an average time to sell, but be sure to compare like times of year, spring with spring or summer with summer.

5. More Specific Data. When looking at general statistics, you have to remember that numbers like broad market trends may include both condos and fee-simple properties. It may be the case that the condo market is cool in your area, but the overall market is doing well, or vice versa. Local brokers will be able to help you with specifics.